INNOVFIN SME GUARANTEE FACILITY
Code: SF-21-0015
Financial Scheme Type
Loan/Guarantee
Category
SME
Industries
All
Starting Date
2014
Ending Date
-
Status
Active
Min of funding
€25.000
Max of funding
€7.500.000
Benefits
■ The guarantee automatically covers 50% of the principal and interest losses on each exposure
■ Payments will be made upon default, with a pro-rata sharing of recoveries
■ No capital charge (0% Risk-Weighted Assets) for counterparty risk is required on the covered part of the loan portfolio thanks to EIF’s Multilateral Development Bank status
■ InnovFin SME Guarantee is a flexible product which grants the financial intermediary a great degree of autonomy, e.g. the intermediary has full delegation on the origination, credit decisions, servicing, etc.
Description
InnovFin SME Guarantee is a guarantee or counter-guarantee on debt financing that the European Investment Fund (EIF) provides to financial intermediaries in order to improve access to finance for innovative Small and Medium-sized Enterprises (SMEs) and Small Mid-caps (enterprises with up to 499 employees). Thanks to the InnovFin SME Guarantee, financial intermediaries – i.e. banks and other lending institutions, guarantee schemes or debt funds which are selected by the EIF can provide debt financing on favourable terms to innovative SMEs and Small Mid-caps in EU Member States and Associated Countries. Under InnovFin SME Guarantee, EIF provides EU-supported guarantees or counter-guarantees to selected financial intermediaries to cover for potential losses on a portfolio of SME loans. The guarantee covers up to 50% of the loss on each new eligible loan, bond or lease that is originated typically during a two-year period. The following products are eligible:
■ Loans, bonds and lease financing are eligible
■ The purpose of financing can be investments (tangible or intangible assets) , working capital or business transfers
■ Both term and revolving facilities are eligible
■ Amount: at least EUR 25,000, up to a maximum of EUR 7.5 million
■ Maturity: at least 1 year, up to a maximum of 10 years
■ Currency: EUR and/or local currency
Objectives
Improve access to finance for innovative Small and Medium-sized Enterprises (SMEs) and Small Mid-caps (enterprises with up to 499 employees)
Eligibility
- SMEs investing in the production or development of innovative products, processes and/or services that present a risk of technological or industrial failure; or
- SMEs and Small Mid-caps that are “fast growing enterprises”, i.e. their workforce or turnover has increased by at least 20% p.a. over the last 3 years; or
- SMEs and Small Mid-caps that have a significant innovation potential or are R&I-intensive enterprises, i.e. satisfying at least one “innovation criterion” out of a set of pre-defined eligibility criteria.
Implementer / Partner
Application Method
After clicking the "Website" button, please read the call details carefully, find the right page, and then read the application method, what you are required to do, what documents, and any other specific items. Every call varies from donor to donor, so you need to be careful and attentive. Most calls also have a Q&A section, or a contact section. For any additional information do not hesitate to contact us at info@aida.gov.al. An SME care and support employee will contact you in time. Thank you.